DHS awards $12.8M for Georgia PSO services to Paragon Systems Inc. under full and open competition

Contract Overview

Contract Amount: $12,849,991 ($12.8M)

Contractor: Paragon Systems Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-10-01

End Date: 2023-03-31

Contract Duration: 181 days

Daily Burn Rate: $71.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF GEORGIA

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.8 million to PARAGON SYSTEMS INC for work described as: PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF GEORGIA Key points: 1. Contract awarded to Paragon Systems Inc. for $12.8 million. 2. Services cover Protective Security Officer (PSO) duties across Georgia. 3. Procurement method was full and open competition. 4. Contract duration is 181 days, ending March 31, 2023. 5. The NAICS code is 561612 for Security Guards and Patrol Services.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests clear cost expectations. Benchmarking against similar PSO contracts would provide a more definitive value assessment, but the price appears reasonable for the scope and duration.

Cost Per Unit: $17,400 per day (approx.)

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value by selecting from a range of qualified offerors.

Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, maximizing taxpayer value for essential security services.

Public Impact

Ensures continuous security operations at federal facilities in Georgia. Supports the Department of Homeland Security's mission to protect critical infrastructure. Provides employment opportunities within the security services sector in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Short contract duration (181 days) may indicate a need for follow-on contracts or potential instability.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.

Positive Signals

Awarded under full and open competition, suggesting a robust market.
Firm fixed price contract provides cost certainty.
Awarded to a single contractor, potentially simplifying management.

Sector Analysis

The security services sector, particularly guard and patrol services, is competitive. Spending benchmarks for PSO services can vary significantly based on location, threat level, and specific requirements. This contract's value appears moderate for statewide coverage.

Small Business Impact

While the contract was awarded under full and open competition, there is no explicit indication of small business participation or subcontracting goals in the provided data. Further review would be needed to determine if small businesses were involved.

Oversight & Accountability

The Department of Homeland Security, Office of Procurement Operations, managed this award. Standard government oversight procedures for contract performance and payment would apply. The short duration warrants monitoring for potential extensions or re-competition.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Short contract duration.
Limited performance data provided.
Potential for follow-on contract costs.
Unclear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.8 million to PARAGON SYSTEMS INC. PROTECTIVE SECURITY OFFICER (PSO) SERVICES THROUGHOUT THE STATE OF GEORGIA

Who is the contractor on this award?

The obligated recipient is PARAGON SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-03-31.

What is the specific scope of 'Protective Security Officer' duties covered by this contract?

The provided data does not detail the specific duties of the Protective Security Officers. Typically, PSO roles involve safeguarding federal facilities, personnel, and assets against threats. This could include access control, surveillance, patrolling, and responding to security incidents. A detailed review of the contract statement of work would be necessary to understand the precise responsibilities and required qualifications.

How does the awarded price compare to industry benchmarks for similar PSO services in Georgia?

Without specific details on the required PSO skill levels, post orders, and geographic coverage density, a precise benchmark comparison is challenging. However, the approximate daily rate of $17,400 for statewide coverage suggests a potentially competitive price, assuming a significant number of posts and officers are involved. Further analysis would require comparing against contracts with similar operational complexities and geographic footprints.

What is the potential impact of the short contract duration on service continuity and future costs?

The 181-day duration is quite short for statewide security services, suggesting this might be a bridge contract or a limited-scope requirement. This brevity could lead to increased administrative costs for frequent re-competition or extensions. It also raises concerns about potential disruptions in service continuity if a follow-on contract is not secured promptly, potentially impacting operational efficiency and security posture.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Securitas AB

Address: 13900 LINCOLN PARK DR STE 300, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,849,991

Exercised Options: $12,849,991

Current Obligation: $12,849,991

Actual Outlays: $12,849,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQE417D00001

IDV Type: IDC

Timeline